CONTRACTS 08

Question 1

Identification of Goods

Answer 1

Distinguising the goods named in a contractfrom the seller’s or lessor’s other goods.

Question 2

Future Goods

Answer 2

Goods not yet in existence (e.g. ungrown crops, unborn stock animals)

Question 3

Title

Answer 3

Legal, tangible evidence of ownership of goods.

Question 4

Shipment Contract

Answer 4

A contract that requires the seller to ship the goods to the buyer bia a common carrier.

Question 5

Destination Contract

Answer 5

A contract that requires the seller to deliver the goods either to the buyer’s place of business or to another destincation specified in the sales contract.

Question 6

Document of Title

Answer 6

An actual piece of paper, such as a warehouse receipt or bill of lading, that is required in some transactions of pickup and delivery.

Question 7

Shipment Contract

Answer 7

The buyer bears the risk of loss during transportation.

Question 8

Destination Contract

Answer 8

The seller bears the risk of loss during transportation.

Question 9

Bailee

Answer 9

A holder of goods who is not a seller of a buyer.

Question 10

Sale on Approval

Answer 10

A type of sale in which there is no actual sale unless and until the buyer accepts the goods.

Question 11

Sale or Return Contract

Answer 11

A contract in which the seller delivers good to a buyer with the understanding that the buyer may return them if they are not used or resold within a stated or reasonable period of time.

Question 12

Consignment

Answer 12

An arrangement in which a seller (the consignor) delivers goods to a buyer (the consignee) to sell.

Question 13

Void Title

Answer 13

A situation in which a thief acquires no title to goods she steals.

Question 14

Voidable Title

Answer 14

A title that a purchaser has if the goods were obtained by fraud, a check that is later dishonored, or impersonation of another person.

Question 15

Good Faith Purchaser for Value

Answer 15

A person to whom good title can be transferred from a person with voidable title. The real owner cannot reclaim goods from a good faith purchaser for value.

Question 16

Good Faith Subsequent Lessee

Answer 16

A person to whom a lease interest can be transferred from a person with voidable title. The real owner cannot reclaim the goods from the subsequent lessee until the lease expires.

Question 17

Buyer in the Ordinary Course of Business

Answer 17

A person who in good faith and without knowledge that the sale violates knowledge that the sale violates the ownership or security interests of a third party buys goods in the ordinary course of business from a person in the business of selling goods of that kind. A buyer in the ordinary course of business takes the goods free of any third-party security interest in the goods.